"We had the belief the geology displayed all the ingredients required for significant shallow high-grade gold mineralisation, which has been confirmed by this surface sampling.

"The team is now developing plans for accelerated exploration as there is tremendous scope for a very significant discovery in this area.”

Rock chip details

Xanadu said that the majority of the new results are from sampling surface outcrops and sub crops that occur south of known porphyry mineralisation at Diorite Hill and Stockwork Hill.

The style of mineralisation indicates a potential link between known gold-rich porphyry copper mineralisation and newly discovered veins.

A total of 157 rock chips samples were collected from out cropping and sub cropping veins across three main zones.

The majority of samples returned highly anomalous values, 57.9% of samples graded more than 1g/t gold.

Significantly a total of 56 samples returned grades higher than 10g/t gold and 8 samples returned more than 100g/t gold.

Oyut Ulaan is a strategic asset

The project is strategically located within the South Gobi Copper Belt, which hosts the world class Oyu Tolgoi copper-gold project, and 260 kilometres east of Xanadu’s flagship Kharmagtai copper-gold project.